What principle asserts that property should be taxed at its fair market value?

The principle that asserts property should be taxed at its fair market value is accurately identified as the Assessment Fairness Principle. This principle emphasizes that property taxes should reflect the true value of the property in the market, ensuring that taxpayers are charged based on what their property is realistically worth. This fosters fairness in the tax system, as it implies that similar properties are assessed equally, which is essential for maintaining public trust and equity in taxation.

By valuing properties at their fair market value, jurisdictions aim to create a consistent and transparent method of assessment that aligns with the principle that taxpayers should only pay what their property is actually worth, preventing disparities that could arise if properties were assessed at arbitrary or outdated values. This principle supports the broader goal of equitable taxation and ensures that all property owners contribute fairly to the funding of local services and infrastructure based on the actual economic value of their properties.